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For nine decades, the Kiplinger organization has led the way in personal finance and business forecasting. The Kiplinger Letter, launched in 1923, remains the longest continuously published newsletter in the United States. In 1947, Kiplinger created the nation's first personal finance magazine. Today, Kiplinger.com is the fastest growing Web site in personal finance. The Kiplinger editors remain dedicated to delivering sound, unbiased advice for your family and your business in clear, concise language.

I have had no money for a while
Then for my birthday someone gave me 1,000 dollars.
Let's go buy all we want!
Oh, now we have no more money.

Plenty of you have probably received -- or will soon -- checks for that amount from Uncle Sam. In fact, the average refund has been nearly three times that amount for the past two years. It's tempting to spend on something you really want -- say a big-screen TV, tech toys or new clothes -- but you'll be better off it you put that money to work for you.

Here are five good uses of your tax refund (or birthday check, or any other small windfall). And check out our 10 Smart Uses for Your Refund slide show for more ideas.

For $1,000 you can add several evergreen plants, redo a small backyard, install landscape lighting or even hire a landscape designer or architect to create a plan for your yard. See Cheap Ways to Improve Curb Appeal for more ideas.

Online forms can be an affordable way to write a will if your finances are uncomplicated. But if your circumstances are complex, you should hire a lawyer to help you draft estate-planning documents. Expect to pay about $300 for a simple will. You could pay up to $1,000 for a more comprehensive estate plan that includes a living will or health-care directive and a power of attorney document.

Take classes to improve your current skill set to land a raise or promotion. Or learn new skills if you're thinking about switching jobs. Check with a nearby community or technical college for affordable courses, or consider UC Berkeley Extension's online courses, which cost less than $1,000.

If you're trying to sell your home, you can make it more inviting to potential buyers by decluttering it and decorating it for the masses -- in other words, staging it. This will set your home apart and cut the time it's on the market. See Home Staging Transformations for Under $1,000.

Banking Services 101

TurboTax Articles

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

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Wayne Bradshaw

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The smartest thing to do with the $1000 is to stash it in an "emergency fund". If you did that every year, you would soon have a pretty comfortable "nest egg". Either that, or adjust your withholding...if your return is that big you are actually just "shorting" you paycheck and giving the government an interest free loan.

I keep $500.00 to $700.00 in my desk drawer. When I need money quick I loan it to myself . When I get paid I pay the dawer back. I always hae money of the books and on hand when a bargan pops up unexpectedly. It is nice to have a little cushion ,but you can cheat yourself and not pay it back or you will end up with nothing again.

Lisa----I'm with you although my city also takes a bundle for "Parks and Recreation" and to make million dollar bike lanes instead of improving the streets and filling the "pot holes" for the 99.8% that drive a car.

$1,000.00 is chump change in comparison to an amount that would be significant enough to warrant writing an article of interest. Oh yeah, don't forget this little surprise - That refund check from IRS is subject to income tax on your next filing, so about 25% or more of that big $1,000 is going to evaporate courtesy of your federal and state income tax load - so now how cool do you feel? Gee, what remains may be enough for 6 or 7 fairly nice dinners out with a bottle of wine. Or you could fill your SUV's fuel tank about 12 times. If your vehicle has a timing belt that needs to be replaced (60,000 miles for affected makes/models) you could do that. Or you could make the smart play and pay down your credit card debt and call the bank to ask them to lower your credit line to prevent getting trapped again (nah, that is way to smart a thing to do, eh?). So $1k is a fairly nice chunk of cash to play with, but until you get into a $10,000 windfall there really is not a lot to talk about that could be life changing unto itself. At that, even $10k can go pretty fast if restraint is not exercised, as there are plenty of folks that would love to help you spend it (new car with a nice down payment anybody?) In my case even $10,000 would not excite me unless it was truly unencumbered of income tax. Then we could talk about making an investment somewhere.

Paying down a credit card is good... but think twice about asking the bank to drop your credit limit. It can lower your credit rating as well. Instead just show restraint and dont get yourself in the credit card game again. Better to take all your credit card debt and with the help of a loan calculator put all your credit cards on an fasttrack repayment plan. Just a few dollars more than the minimum can and will take YEARS of the payback the credit card companies charge.